Bankruptcy

What happens if I am made bankrupt?

• You will end up owing much more than the Council Tax debt because the costs associated with a bankruptcy order can escalate to over £30,000.
• You will lose control of all your assets, including your bank accounts.
• If you own your own home, it might have to be sold.
• Some of your possessions might have to be sold, for example, you will usually lose your car and any luxury items you own.
• Some professions don’t let people who have been made bankrupt carry on working so you may lose your job.
• If you own a business, it is more than likely that the Official Receiver will close down your business, dismiss your employees and sell off the assets.

How can I prevent this from happening?

The council will only apply to make you bankrupt when all other available ways to recover the council tax have been unsuccessful.

You may be able to prevent this course of action by contacting the council as soon as possible to make a suitable payment proposal.